Chapter 7: Q9DQ (page 342)
Refer to the financial statements of Samsung in Appendix A. What is the amount of Samsung’s accounts receivable, titled as “Trade Receivables,” on its December 31, 2015, balance sheet?
Answer
The business entity reports KRW 25,168,026 on the balance sheet as trade receivables.
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Question: Refer to the information in Exercise 7-7 to complete the following requirements.
b. On June 5 of that next period, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries necessary to reinstate the account and to record the cash received.
Hitachi, Ltd., reports total revenues of ¥9,616,202 million for its current fiscal year, and its current fiscal year-end unadjusted trial balance reports a debit balance for trade receivables (gross) of ¥2,797,935 million
b. Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be 2.0% of year-end trade receivables (gross) and its unadjusted trial balance reports a credit balance of ¥10,000 million for the Allowance for Doubtful Accounts.
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.
b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,600 credit.
Refer to the December 31, 2015, financial statements of Samsung in Appendix A. Does Samsung report its accounts receivable, titled as “Trade Receivables,” as a current or noncurrent asset?
On June 30, Petrov Co. has \(128,700 of accounts receivable. Prepare journal entries to record the following selected July transactions. Also prepare any footnotes to the July 31 financial statements that result from these transactions. (The company uses the perpetual inventory system.)
July 4 Sold \)7,245 of merchandise (that had cost \(5,000) to customers on credit.
9 Sold \)20,000 of accounts receivable to Main Bank. Main charges a 4% factoring fee.
17 Received \(5,859 cash from customers in payment on their accounts.
27 Borrowed \)10,000 cash from Main Bank, pledging $12,500 of accounts receivable as security for the loan.
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